Iloilo’s desperate cry for help

Since last week, Iloilo City residents have been seeking the help of the Energy Regulatory Commission (ERC) to prevent a possible "blackout" that could cripple businesses during the holiday season and dampen the local Christmas celebration.

The Iloilo League of Municipalities pointed out that the projected total power shutdown in Iloilo would affect the economic development of its 42 towns.

An official of the Panay Power Corp. (PPC) has mentioned that the company might shut down its 72-megawatt power plant in Lapaz, Iloilo City on Dec. 15 since it is reportedly not recovering even its fuel costs because of continued losses it has been incurring due to underpayments from the Panay Electric Co. (PECO).

PECO’s underpayments are reportedly due to the ERC’s decision last September that pegged electricity generation rates charged by PECO in Iloilo City to that of the National Power Corp.

This amounted to a cutdown of P2 per kilowatt hour in PECO’s rates. Correspondingly, PECO also cut payments to PPC.

PECO, meanwhile, petitioned the ERC to restore the old rate that is higher than the NPC rate. The restored cuts, the power firm argued, would cover fuel costs and foreign exchange fluctuations. They would also allow the firm to continue its operations although it would not result in bigger profits.

According to a PPC official, PECO to date has still to pay more than P36 million to PPC. Because of this, the PPC may cut down its power supply to PECO.

Anyone can immediately see the catastrophic impact of a power shutdown in Iloilo City and the entire Iloilo province by Dec. 15. First, it will be the eve of the Misa de Aguinaldo, the start of the nine-day novena Masses for Christmas.

Some hotels may have power generators, but these are not supposed to replace PECO’s supply of electricity. Hotels, restaurants, eateries and other businesses in the city will be adversely affected.

Romeo Labramonte, executive director of the League of Municipalities of Iloilo, stressed that a power cutdown will create a negative impact on the economic thrust of the business sector and the consumer market as a whole.

In short, this will cut the sales of malls in Iloilo City now that consumers are rushing to buy their holiday needs.

The league, together with several groups in Iloilo City and city officials, has forwarded the petition to the ERC, urging it to prevent the massive power outage.

If that is not acted upon immediately, Iloilo City and the province will be plunged into darkness.

That will also deter preparations for Dinagyang, the city’s main tourist-drawer. Although still in January, various tribes participating in the Dinagyang are already keeping secret their nightly practice sessions. But how could they when the city is darkened because of the power outage?

ERC urged to probe Ceneco

There was a parallel development in Bacolod City. The Freedom from Debt Coalition has asked the ERC to investigate or audit the Central Negros Electric Cooperative (Ceneco) for possible violations of the ERC guidelines and policies as well as that of the National Electrification Administration.

The FDC-Negros coordinator signed the complaint submitted to the ERC officer-in-charge.

Ceneco president Ed Guilem dismissed the claim as a smear campaign against the management because the cooperative has already attained the level of Category A plus.

Guilem pointed out that there were no violations because if that is the case, they would have already been suspended or reprimanded by the NEA.

Besides, he added, FDC-Negros is not a legitimate consumers’ group and cannot legitimately represent the Ceneco consumers.

The FDC complaints ranged from violations of Ceneco’s procurement manual in the award of the supply, delivery and installation of the 30 MGA substation in Alinis, open defiance by the Ceneco board of the NEA’s disapproval of the award of the P6.9-million contract to Power Star Inc., non-recommendation of the PBAC of the awarding of the contract, and misuse of electric cooperative funds, especially the five percent reinvestment fund awarded to PPI Pazifik Power Inc.

Generator purchase questioned

As a result, there has been a series of text messages circulating in Bacolod questioning the Ceneco’s purchase of a generator worth P800,000, which reportedly cost only P600,000.

The generator was supposed to be a standby genset for the Southeast Asian Games.

Ceneco president Guillermo denied any involvement and charged that the text messages were just part of a smear campaign.

Eldy Estranero, barangay coordinator of Rep. Monico Puentevella and chairman of the Bacolod Southeast Asian Games Coordinating Council, denied the charge linking him to the alleged anomalous purchase.

"I came to know about the generator only when Ceneco personnel informed us that they were placing it at the Paglaum Sports Stadium," he said.

Guilem also said the Ceneco board had earlier passed a resolution for the emergency purchase of the generator as they had received a directive from the NEA to support the SEA Games.

He added that it was the cooperative’s procurement department that purchased the unit subject to the usual procedures and internal audit.

Well, it’s already nearing Christmas, but it seems brickbats continue to play around. That’s no way to observe Christmas, pointed out a local priest.

‘Muscovado’ project

The reported plan of sugar farmers of Sigma in Capiz to produce "muscovado" sugar is actually a much-awaited development. It will provide a source of unrefined or organic sugar.

Actually, it is only Antique and Iloilo which operate muscovado mills, although Iloilo’s production is way below that of Antique.

Sigma Mayor Roberto Sualog said the project will require at least 22 production workers and the support and supply of sugarcane by 48 sugar farmers. It, however, will benefit 348 sugar farmer-workers.

In Antique, despite their small production volumes, the muscovado mills operated by small farmers continue to enjoy good business.

Transport costs, however, seem to have upped the retail price of these products of small mills.

Actually, Alter Trade in Negros Occidental has already made plans to expand its muscovado production capabilities. It has been exporting "organic sugar" to Japan and Europe. The plan to increase production capacity only confirms what former Administrator Nico Alonzo of the Sugar Regulatory Administration claims to be a growing market for organic sugar.

Several years back, Alonso, with the help of Sugar Board member Arcadio Gorriceta, made plans to revive and modernize the muscovado-making industry of Antique. That, however, fell flat on its face. One factor was the reluctance of small muscovado farmers to integrate their resources so they could put up better facilities. India seems to be the main source of muscovado mills that could be used locally.

Incidentally, the Philippine Sugar Technologists Inc. (Philsutech) still has on file, I hope, the study conducted by former VMC top honcho Frank Eala showing that there is an unserviced market for muscovado sugar in the interior areas, particularly in Mindanao.

Anyway, I hope that the Sigma project will service at least Capiz and its needs for muscovado sugar.

ADDENDA. Dumaguete drug peddler Marlon Canas was found guilty of selling shabu and was meted a life sentence and two 14-year maximum jail terms by Judge Rafael Cresencio Tan of Regional Trial Court Branch 30 of Negros Oriental. Canas was the 10th person sentenced to life by the RTC judge. Canas was also sentenced to 12 years and one day to 14 years for possession of marijuana leaves... Silliman University president Dr. Agustin Pulido urged members of the Alejandrino-Generoso clan to wait for the outcome of the court litigation over the disputed 20-hectare Silliman University farm. This was aired by Pulido after SU guards and the police foiled the attempt of 30 people, purportedly members of the claimants’ family, to enter the SU farm. The Enegeroso family presented a copy of a letter of Dr. David C. Hibbard dated April 1, 1922, turning two parcels of land back to the Alejandrino-Generoso clan after they had cultivated them for 15 years.